San Pablo Balances $73M Budget Without Layoffs, Scraps Rent Registry

The San Pablo City Council spent most of its June 1 meeting navigating a $4.4 million structural deficit driven by flat casino revenue — and emerged with a balanced two-year budget that avoids layoffs for the 12th consecutive year. But the fiscal pressures aren't going away: staff warned that without new revenue from cannabis retail, a potential sales tax measure, and other sources, staffing cuts could be on the table within two years. Elsewhere, the council split on tenant protections and a Pride flag, producing two 4-1 votes that exposed fault lines on housing policy and civic symbolism.

• Council advances balanced two-year budget that closes a $4.4M deficit through $2.4M in cost cuts and $2M in reserves — no layoffs
• Rent registry repealed 4-1 over Councilmember Pineda's objection; city pivots to a mediation-based rent review program with a volunteer board
• Pride flag approved for all of June at City Hall, 4-1, expanding an eight-year one-day tradition; Mayor Pabon-Alvarado dissents
• $61M in capital projects move forward, including a 100-year-old bridge replacement with a $12M funding gap
• Vice Mayor Xavier secures $3.7M in regional transportation funds for the San Pablo Dam Road interchange

The council unanimously directed City Manager Matt Rodriguez to prepare final budget adoption resolutions for the June 15 consent calendar, setting the city's fiscal course for two years beginning July 1.